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Silver Linings Among the Clouds
The headline is scary but close reading of the story makes the story less scary than it sounds:
The Energy Information Administration (EIA) foresees a pull back in onshore drilling activity because of less-attractive economic returns in both emerging and mature oil production regions.
As of Friday, however, projected oil prices "remain high enough to support development drilling activity in the Bakken, Eagle Ford, Niobrara and Permian Basin, which contribute the majority of U.S. oil production growth."
EIA now expects U.S. crude oil output to average 9.3 million b/d in 2015, an increase of 0.7 million b/d from 2014, but down from the projected growth of .09 million b/d that EIA had forecast in November.
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